Low claims discount

From 1 June 2018 the low claims reward is being replaced by the low claims discount. The low claims discount will apply to eligible members from their first policy renewal after 1 June.

The low claims discount

The low claims discount gives a 10% discount for members who have claimed under $500, or a 5% discount for members who have claimed between $500 and $1,000 and is based on a two year claims period. The premium discount applies for up to 12 months from renewal.

Eligibility for the low claims discount

Members are eligible for the low claims discount if they are paying adult premium rates and have had their Southern Cross health insurance for at least two years continuously, unless they are:

in a subsidised work scheme

under 21 years old.

It does not apply to Critical Illness, Cancer Assist or HealthEssentials plans.

How the low claims discount works

If an eligible member has claimed between $0 and $499 over the two year claims period, a 10% discount is applied to the member's premium at their policy renewal.

If a member has claimed between $500 and $1,000 over the two year claims period, a 5% discount is applied to the member's premium at their policy renewal.

Qualification for the low claims discount is based on claims paid over the two year calculation period, rather than the date of the healthcare service or the date a claim is submitted.

We offer the low claims discount at our discretion. We may change or remove it upon giving reasonable notice to policyholders.

Low claims discount FAQS

The current low claims reward is being gradually replaced with a low claims discount from 1 June 2018 as policyholders renew.

The low claims discount is a 10% discount for members who have claimed under $500, or 5% discount for members who have claimed between $500 and $1000, over the two year calculation period. The discount applies for 12 months from policy renewal.

The low claims reward had a complex set of thresholds depending on age and plan type. Members told us that the reward was not well understood and it was difficult to know the impact of a claim on the ability to retain the reward.

Regular reviews of plans, benefits, rewards and discounts help us to ensure we can continue to offer the best value health insurance for all our members. Changing the low claims reward to the new, simpler, low claims discount recognises that members want to use their policies, and have a straightforward discount when their claims are at a lower level.

Premium levels necessarily reflect claims paid (i.e. the use that is made of the Society's health insurance benefits). The premium charged for different plans and for members in different age groups, takes into account current claims levels and costs, as well as the predicted use of benefits in the coming year.

In the last calendar year, across our membership as a whole, the Society returned on average 90 cents in claims for each premium dollar it received.

Rising claims costs reflect a number of factors. These include increasing medical costs, the introduction of cover for new technologies and treatments, and the increasing levels of use of policy benefits by members.

We offer a healthy lifestyle reward for the first two years of your policy, members who qualify will have the reward applied when they sign up. After two years of continuous membership a low claims discount (previously the low claims reward) is available to certain members. The low claims discount is based on claims over the two year calculation period, and is a 10% discount for members who have claimed under $500, or a 5% discount for members who have claimed between $500 and $1000. The discount applies for 12 months from your policy renewal.

We use a two year period so there is sufficient time to even out your usage of policy benefits. If we only used on year, the threshold would be much lower and it would be harder for members to get the discount.